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American Morning

News/Business. Breaking news and interviews. New. (CC)

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CNN

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03:00:00

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U.s. 27, Us 26, Washington 18, United States 17, Dallas 16, Texas 14, China 13, Europe 11, Mars 9, Nasa 8, Asia 8, Fbi 7, Chris Christie 7, Hong Kong 7, Hama 7, New York 6, Carol 6, America 6, Nina 6, S&p 5,
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  CNN    American Morning    News/Business. Breaking  
   news and interviews. New. (CC)  

    August 5, 2011
    6:00 - 9:00am EDT  

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cash is king. gold is up today. trading at $16.70 an ounce. it will be an interesting day. >> one way to put it, carter. good to see you this morning. thanks very much. see you again on monday morning on "wakeup call". that's it for us. "american morning" continues now. stock market slide. good morning to you. i'm carol costello. after the single worst day on wall street since the 2008 financial crisis, just how bad could it get and what does it mean for your nest egg? gloom around the globe. i'm christine romans. markets in asia down sharply, a sell-off under way in europe where the debt crisis is accelerating. we're live across the globe with what this means for the health of the global economy. and the july jobs report, i'm ali velshi, one of the most closely watched economic indicators on wall street comes out. what it means for you, your job and the recovery on this "american morning." and good morning to you.
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happy friday. it is august 5th. this is "american morning." >> all right. we begin with your money. everyone i hope you had a good night's sleep because we're going to see what happens on day two. at this hour markets across the globe are reeling. that selling driven by fears of a debt crisis in europe and a stalled recovery here and around the world. our economic growth is slowing, manufacturing is down, consumer spending is down, and today, in just two and a half hours, we're going to learn the number of jobs created last month, just how robust or how weak that was. >> everybody certainly anybody with investments, 401(k) or ira watched yesterday as the dow dumped 512 points. that is a more than 4% drop. yesterday capped a brutal couple of weeks. in the past ten trading days, the dow, along with the nasdaq and s&p 500, have all lost more than 10%. that's money gone from the calculation of the value of your portfolio. >> so, you're asking, how soon will it get better?
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because that's what we all want to know. >> that's right. >> we know, let's look -- it's so gloomy and doesn't have to be so gloomy, right? >> i just want to say one thing. the big move happened yesterday. it was the 116th biggest percentage decline in history for the dow. 116th. we have seen these kinds of days before. if you're making trading decisions about your retirement today based on what happened yesterday. >> you're a day late. >> day late and probably several hundred dollars short. >> okay. >> thank you. for lifting the gloom just a little. and we have reporters standing by across the globe, rather, andrews stevens in hong kong, nina dos santos in london. let's start with nina. european markets what are they looking like? >> i'm afraid it's not looking too good. we saw a number of these markets taking their cue from the heavy declines in the united states. yesterday when those markets shut down, in excess of 4%, ftse 100 opened the day down to the tune of 3%, adding already to
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year-to-date loss that is already in the double digits. and this is what i really want to point out to you guys. if you think you have it bad where you are, well, the dow jones industrial average after yesterday's steep fall is only down by just shy of 2% year-to-date. put it into context against some of these european markets and you really see where the problem lies. milan down 20% year-to-date, switzerland, even the dax is down year to date. some of the year peen markets are the ones suffering because it's the euro zone credit situation and debt situation that is the one that has markets worried. we'll have a a pivotal situation in the two and a half hours from now when europe will focus its eyes on the united states when we get the nonfarm payroll numbers, perhaps they will give a shot of optimism at the market. at the moment i'm afraid to say it doesn't look like it. >> thanks very much for that. nina dos santos watching this closely. to andrews stevens standing by
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in hong kong where the hang seng closed down nearly 4.5%, not unlike a lot of other asian markets. what did it look like? >> it looked pretty ugly to end the trading week. it's been pretty ugly for a while. what nina was saying and you were saying there's been a correction going on in the asian markets and it did come to a head today. hong kong down 4%, that's a big move for a volatile market like hong kong. japan down 3.7%, australia down by 4%. that's a really big move for australia. australia is particularly sensitive because it's a commodity based index and very sensitive to what's going on with perception of the global economy and this is what this is all about. you've got the huge crisis brewing in europe. you've got recession or no recession, certainly a stall going on in the u.s., and asia still being the engine, manufacturing center of the world, is feeling the effects. it's funny, a bit of deja vu going on. remember 2008, we watched the crisis of lehman's which spirlds
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into a banking crisis in the u.s. and europe while asia also got hit. we're getting hit again. the economy is in pretty good shape here relatively speaking, but they're still tanking. >> andrew stevens, we'll be watching it carefully today. >> the fact is this is a big market plunge in the middle of a bull market. we've been in a bull market two years. 80% or some crazy amount since the horrible days of 2008. joining us now is investment adviser matt mccall, president of penn financial group. strategists, many are sticking to their call the s&p rallies from here through the end of the year despite what we've seen over the last day or so. how are people supposed to be feeling about stocks. >> you should not be as panicked as you are, are, but it's difficult. i'm a human beings. i woke up after about an hour of sleep and turned on and saw asia was down, europe down, futures here down. it's only normal to feel panic. the problem is, when you invest, you cannot make emotional decisions. any time you make emotional
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decisions, anything in life, it's going to go the wrong way. take a deep breath do a little yoga this morning maybe, go back to the markets before they open, check out the jobs numbers, don't make any harsh decisions right now. >> talking about your 401(k) and stuff. not like people have great amounts of money to invest anyway. they can't take advantage because the stock market is at a low. what people are most worried about, is this a sign we're going to slip into a double dip recession. that's what people are concerned about. are we? >> i don't think we go into double dip. right now and 2008. 2008 company profits were falling. we have company profitings right now, this quarter on pace to be the best quarter in 3.5 years. >> they can borrow money cheaply and we have seen big companies borrow money so cheaply it's inspiring other companies to borrow money cheaply which is the point of low interest rates. >> the problem is they're borrowing money and stuffing it under the bed. not going out and hiring and spending because there's a lot of overhang from the administration and from everything else going on, we don't know what regulations are
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going to be, what taxes will be going forward. with all the unknowns everybody is sitting on their hands. >> matt, we talked about this a lot. you make investment decisions based on the quality of a company what it's likely to do. what happened in the market ran completely counter to what you might think. mcdonald's is not worth 5% less today as a company than it was yesterday or gm or microsoft. so, how do you continue and how do our viewers continue to make decisions going forward with this strange, weird, overhang that's disconnected from reality around us? >> the first thing is, you don't base your long it term decisions. most people are investing for thong term. you can't base on one or two days in the market. stocks are cheap but they can get cheaper. that's where it comes the timing of the market, trying to pick the bottom or top is very difficult. the market as individual investor, somebody in their 30s, you want to put money into the market today in my mind. it may not be the bottom but you're seeing a great opportunity longer term. if you have to put money in.
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>> what if you're 50. >> i would do the same thing. >> 60? >> let's talk. that's another show. >> 60 and you're working your program you should not be so fully engaged in the market it hurts so bad yesterday. >> you should be in fixed income which fixed income was up yesterday. you have to be diversified. our largest holding is gold the last four years. it hit an all-time high in the morning. you can weather this storm. again it goes back to the short-term swings you can't make your long-term decisions based on a couple days action in the market. it's difficult to sit on your hands and watch this. unfortunately you have to. >> reason why we should be looking out five years, ten years and have anything to be excited about for stocks when you look at what's happening to some of the countries and debt situations, overleveraged american consumer and government. >> and dysfunctional washington. >> that's part of this concern. >> geez. makes me want to sell. >> all right. well then i'll give you something. you have india, china, these places still growing. >> yes. >> there is opportunity.
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indonesia is one of my favorite countries. fourth most populace country in the world. growth country. people don't look at that. they think it's too risky. the united states is risky. i hate to break it to you. there are opportunities out there. there are growth stories out there. the u.s. may only grow 2% the next five years but there are opportunities out there. >> 2%. 2% growth does not bring down unemployment. i mean that's -- >> unfortunately you're right. i hate to say that. >> all right. so you're the bearer of good news and bad news. >> medium news. >> all right. >> we're going to keep talking this morning and keep watching futures. say one other thing, over the past 25 years the s&p 500 when it's had a day like yesterday, four out of five times there are rallies the next day. doesn't mean it will stay rallying. if you're selling this morning -- >> do not sell this morning. if you get anything out of this do not sell this morning. >> advice taken. >> a good friend, christine and i, who worked with us at the new york stock exchange, trader for 40 years, ted wiseburg. >> oh, yeah. >> what did he say last night? the stock market is the only place where they hold a sale, nobody comes. >> it's true.
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there is a bit of bright news this morning a tiny bit. it's new this morning. congress may have left town, but they are still wheeling and dealing so to speak. senate majority leader harry reid announcing a bipartisan compromise to fund the faa and send tens of thousands of government construction employees back to work. here's the deal. the senate will accept a temporary spending bill passed by house republicans and transportation secretary ray lahood will use his authority to block the bill's spending cuts, targeting some smaller airports. they figured out a way where lawmakers didn't have to come back from vacation, but the faa workers can still get paid. >> they only figured out that way because everybody went nuts. >> exactly. that's the victory here. -- power of the people. >> totally right. >> people were mad about this. maybe they forced congress to act. >> yep. president obama set to unveil his plan to help unemployed veterans find jobs. it's designed to help military men and women make that transition back into the civilian work force. it offers business tax incentives to hire vets. interesting plan.
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right now the unemployment rate for veterans of the wars in iraq and afghanistan is triple the national average. that's incredible. >> and now that the u.s. debt crisis has cooled, vice president joe biden is heading to china. he'll be leaving in 11 days for talks with top chinese officials and then mongolia and japan. japan he'll meet with u.s. civilian and military personnel who have been helping with that country's nuclear crisis in fukushima. coming up next on "american morning," polygamous prophet warren jeffs found guilty on two counts of aggravated assault against minors. terrifying moment for passengers on board a packed city bus in philadelphia as it's hit with a hail of gunfire. what triggered the shooting. >> tiger woods back in action with his new caddie, but it's his old caddie who may get the last laugh. it's 11 minutes after the hour. ♪
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around hama, the city is at the center of the latest crackdown by dissident -- on dissidents by security forces. the united states condemning president assad's regime saying it's lost legitimacy after witnesses reported civilians being executed in the streets. >> it's horrific, it's appalling, he's massacring his own people who are coming out simply to express themselves peacefully. absolutely unacceptable, appalling behavior and it deserving not only the condemnation but the full force of the international community, to pressure that it stop. >> more than 200 people have been killed in hama since government troops moved into the city last weekend to crush the revolt there. the penalty phase is under way after a texas jury found polygamous sect leader warren jeffs guilty on two counts of sexual assault against minors. the jury reached that verdict in less than four hours. the same 12 jurors will now sentence jeffs possibly to life in prison.
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the charges jeffs was convicted of stem from a 2008 raid on his ranch that his church operates near eldorado, texas. dramatic surveillance video shows a philadelphia city bus packed with passengers being shot up from the street. the tape shown at a hearing for six people charged in the shooting which happened in june. one of the people, the mother who allegedly triggered this incident. you see her getting off the bus after a passenger criticized her for spanking her child. authorities say she called a group of friends who then opened fire with semiautomatic weapons. remarkably, no passengers were injured. >> it's unbelievable. there's video inside this bus and outside. these guys show up with big, big guns and start shooting the bus. >> because this woman spanked her child on the bus and passengers complained. >> if i ever call you two to say i got into a bus with somebody, don't show up with weapons. >> just unbelievable. >> unbelievable that nobody got hurt in that thing. >> that's like -- i don't know.
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there's divine intervention there. >> bus driver must have panicked. see him sitting there. >> i heard somebody tell me, so much information going through my head the last 12 hours i don't know what's real and what isn't, he was a war veteran. >> really? >> he had some sense of experience of dealing with this. he hit the pedal and got out of there as fast as he could. >> good for him. security scare on the virginia tech cam pus. an alert issued yesterday morning after it was believed a plan was possibly on campus carrying a gun. summer school students were told to stay indoors, classes were canceled after several hours of searching a gunman was found and the alert was dropped. you'll remember in 2007, a gunman opened fire at virginia tech, fatally shooting 32 people, before killing himself. now is your chance to talk back on one of the big stories of the day. our question this morning, when will our fears about muslim-americans fade. i bring this up because the governor of new jersey chris christie, a republican, and a tea party favorite, has had enough of it.
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>> shirr rhea law business is crap. it's crazy. and i'm tired of dealing with the crazies. >> christi was defending his choice of muslim-american lawyer mohammed for a state judgeship. conservative bloggers were furious, accused christy of being in bed with the enemy, feared mohammed would make judicial decisions based on the koran or sure rhea law. >> it has nothing to do with this at all. it's crazy. it's crazy the guy is an american citizen. >> almost ten years since 9/11. osama bin laden is dead. yes, there have been arrests of muslim extremists within the united states and yes, we do need to be vigilant about homeland security, but should all muslims be suspect. according to the "new york times" more than two dozen states have considered measures to restrict judges from consulting shirr rhea law. our talk back question today.
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when will our fears about muslim-americans fade? tell us on our facebook page, facebook.com/americanmorning. write out american morning. >> i think governor christi thinks it's crazy. >> out there with it. great to hear. >> that's characteristic of him. when he thinks something is not right he says it. whether you like his politics or not, a lot of people don't, that is an interesting characteristic of his. >> he just says it. it's kind of a -- it's a jersey thing. tiger woods admits he was little nervous, but he says he decided to just let it rip and see what happens. so far so good. tiger returning to the tour yesterday at the bridgestone invitational in akron, ohio. firing a solid 2 under par 68 in the opening round. he hasn't played in three months. tiger's six strokes behind the leader adam scott. guess who's caddieing for scott? steve williams, the caddie tiger
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recently fired. ahead on "american morning," dusty plane, so much heat, barely any rain, it's on pace to be the stifling summer ever in the american heartland. we're live in dallas where staying cool has become a matter of life and death. why scientists believe these new photos of mars could mean there's life on the red planet. get ready to geek out all of you who love martian action. it's 20 minutes after the hour. : your nutritional needs can go up when you're on the road to recovery. proper nutrition can help you get back on your feet. three out of four doctors recommend the ensure brand for extra nutrition. ensure clinical strength has revigor and thirteen grams of protein to protect, preserve, and promote muscle health. and immune balance to help support your immune system. ensure clinical strength... helping you to bounce back. ensure! nutrition in charge!
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minding your business this morning. world stock markets dropped sharply as global economic worries grow. stock indices in japan, hong kong and australia closing with losses hovering around 4%.
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meanwhile, european markets have opened. they're continuing their slide after the dow fell 512 points on thursday. that's the worst one-day drop since the financial crisis in 2008. a new jobs report due out this morning from the labor department, the last report saw the unemployment rate rise to 9.2%. that was for june. economists predict it could save the same for july with a paltry 75% of jobs added to payrolls. that is not enough to boost an economic recovery. almost one out of seven americans rely on food stamps according to a new report from the u.s. department of agriculture. as of may some 50 million americans were using food stamps. that's an increase of 34% from just two years ago. aig just reported its first profitable quarter since the financial crisis. the giant was bailed out by the u.s. government, bailed out to the tune of $180 billion. the company now reporting a net income of $1.8 billion in the second quarter. and chrysler reported its
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recalling 300,000 model year 2008 minivans because of a problem that causes their air bags to deploy unnecessarily. chrysler had already recalled some of these same minivans before to fix a similar problem with those air bags. "american morning" will be right back after this quick break. we're going to head on into the interview. krystal. . . krystal . . . what lead to your decision to go with the fusion? i just keep on going back to looks; it's a great looking car.
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how do your co-workers feel about your decision? they were the ones who were against ford. they were like they're a truck company. for the most part i am pretty sure i have changed most everyone's mind. krystal, you seem pretty comfortable up there, are you sure you haven't done this before? umm. . . i did 8th grade telecommunications class. uh oh, sesame stir fry from lucky dynasty. oh, me too! but mine's lean cuisine, so no preservatives. [ female announcer ] lean cuisine has 90 dishes with no preservatives and quality ingredients like farm-picked broccoli and tender white meat chicken. lean cuisine. but not in my neighborhood. ♪ [ female announcer ] we're throwing away misperceptions about natural gas vehicles. more of the vehicles that fuel our lives use clean american natural gas today. it costs about 40 percent less than gasoline, so why aren't we using it even more? start a conversation about using more natural gas vehicles in your community.
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good morning. it's 28 minutes after the hour. it's time for this morning's top stories. fears over a stalled global economy pushing asian stocks down sharply. the hong kong hang seng down 4%, nikkei down 3%, europe where trading is still under way markets are negative. the declines after the dow tumbled more than 500 points yesterday. today's july jobs report will dictate whether the selling continues. the report comes out in exactly two hours. economists surveyed by cnn money
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predict the economy created 75,000 jobs. that would be a slight improvement from june. wouldn't be fantastic. if it's worse than that, fasten your seat belts. the senate is expected to pass a deal to break the deadlock over funding. the federal aviation administration, that should put thousands of furloughed workers back to work. president obama called the deal, quote, important step forward. let's talk about the weather now. heat wave, it's suffocating the southern plains and it's not letting up any time today. to give you an idea of the hellish conditions, take a look at this blood red lake in san san angelo, texas. bacteria that feeds off the hot conditions have taken over what's left of the water and turned it blood red. >> on top of the lethal heat, texas is in the midst of the most severe drought in state history. ed lavandera live in dallas this morning. that's not good for joggers, farmers, anybody trying to run a business outside. this is tough times. >> really is brutal. red water, we got blue water for
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you. kind of wanted to lighten things up a little bit here this morning. you know, this is actually a gas station or huge gas station for truckers. so hot around here they're putting in pools, guys. the heat here is really taking its toll on a lot of people in many different ways. >> reporter: these days, when the sun breaks through the horizon it comes with a sense of dread. it doesn't take long for triple-digit temperatures to lock a suffocating grip on the southern plains. >> nothing there. >> reporter: that dread struck the heart of lucy harris's dallas neighborhood. her 79-year-old neighbor delores grisssome died in her home. the medical examiner says the heat caused her death, but lucy says her friend didn't have to die. someone stole the elderly woman's air conditioning unit. >> she had no idea. she said her house was hot. when your house is hot because the air conditioning is gone.
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the unit ripped out of the cage. she reported it stolen. two days later she died. >> what do you think should happen to the people that stole this air conditioning unit. >>? they need to be put away. that's what need to happen. they need to be -- they need life in prison for doing some stuff like that. they caused her to die, so they need to be in prison. >> reporter: protecting the most vulnerable is an urgent concern for social service agencies like the salvation army. it's opened cooling stations targeting the homeless. they are giving out free water and keeping emergency shelters open 24 hours. director michael allen says it's a matter of life and death. >> have you seen people who have come in here with heat exhaustion, on the verge of passing out? >> uh-huh. sometimes we have some guys at the front gate, they're passed out at the front gate and we have to bring them out. >> passed out from the heat? >> uh-huh. >> occupants out of their vehicles. >> some of the hottest spots in major urban areas are on the roadways. >> command center this is
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teresa. >> reporter: inside the command center of the north texas tollway authority they're on the lookout for stranded drivers. they can use heat sensors to monitor roadway temperatures in real time. >> when someone breaks down and they're out in these kind of temperatures on a roadway system, it's very dangerous. >> reporter: the numbers are staggering. workers are recording temperatures of 105 degrees, 18 inches below the toll roads. that can cause roadways to buckle and crack. but this is the most stunning number of all. if you're standing on a paved bridge in this urban jungle, temperatures are reaching almost 142 degrees. >> the actual temperatures are going beyond what we've experienced in the past and we've not really seen roadway temperatures like this probably ever. >> that 142 number is almost just staggering to think about. hard to comprehend really. and just for the record, dallas/ft. worth, probably lit that 35 day mark today.
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straight days of 100 degree plus temperatures. the all-time record, is one week away, 42, we'll reach that mark next week. guys, back to you? >> ed, i'm getting you're going to jump in that pool by the end of the day. because it sure would feel nice. >> might. yeah, couple hours, right? >> thank you. >> i think he's going to do it in between his reports for us. rob marciano in the extreme weather center for us. you're tracking that. at least this is now the main problem we're tracking. we don't have that tropical storm emily to deal with, but boy, that heat is just not moving. >> it's not. it's been stuck there for several weeks now, and really just waiting for the angle of the sun to get lower in the sky so that, you know, we just don't have so much input. that's our only relief at this point and that comes later in the summer. but dallas and oklahoma city, along with a slew of other states still under heat advisories and warnings today and when you couple the humidity it's going to feel like 115 or higher in the spots.
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wichita falls has a streak of its own, over 40 days on 100 plus. 111 expected, oklahoma city 108 for a record, 107 in austin. populated areas getting this heat and keeping this heat dangerous heat. do we cool down? 110 expected today in oklahoma city. 108 in dallas. that's not really a cool down. we cool down to 107 in dallas tomorrow. how about sunday? 106. i think by the time we get towards next week the middle part of next week we start to break down this ridge and temperatures will cool all the way to maybe 99, 98. so we'll probably get to that streak as far as breaking that record we'll get there. mentioned emily. this is what's left of it. we said would have trouble getting over the mountains of hispaniola. fell apart completely yesterday. that's good news for haiti. they got about 5 or 6 inches as opposed to seeing 15 or 20. this may re-emerge, it has a chance of developing back into a tropical storm. its name would still be emily.
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we'll keep track of that. showers and cooler weather not bad across the northeast and heavy thunderstorms expected across parts of this stationary boundary where you'll see travel delays including atlanta potentially tomorrow and on sunday. real cool picture of this, never get tired of lightning out of phoenix, a still shot, just one, but there is some beauty in mother nature even in the most ferocious storms. gorgeous stuff there. toss it back to you. >> that's a little deep for this morning, isn't it? >> it's friday. just pushing through it, guys. >> we are. thank you, rob. okay. this is deep, how is this, life on mars. it might not be so far fetched. the new photos of the red planet creating an awful lot of excitement at nasa. that's because the channels in those craters suggest the possibility that saltwater is flowing on mars and nasa scientists say where there's water, there could be -- >> little green men. >> living organisms. >> the key here is, we know mars
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has a lot of ice. but this is the first time we've seen the potential for liquid water. it might be salty water, but it's still -- it's still liquid. i think that's the real -- the key here. not that mars doesn't have a lot of ice. liquid water certainly to an organism is very, very different than ice. >> according to one of the lead scientists of the project if those channels were made by saltwater flows, the possibility of life on mars, quote, looks more likely. >> not the life we think of. not the green men, right? >> really? >> microbes or something. >> really? >> i don't know. i always thought when we were looking for life we were looking for like a colony of people. >> come on. they have small mouth bass in there. you can go fishing. >> just ahead on "american morning," a massive recall of tainted ground turkey reveals holes in the food safety net. we'll talk to a former fda
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officials about what you ka don to protect yourself. >> this is neat. an organism with an appetite for plastic. a couple of yale undergrads may have found the answer to the age old question of where do we put all this trash? we'll tell you about that on the other side. then they gave us an iihs top safety pick and you... well, you gave us your approval. so we thought, why not give a little back. the chevy model year wrap up. get in on our greatest model year yet. and now, very-well qualified lessees can get a low mileage lease on a chevy cruze ls for around $169 a month. our greatest model year yet is wrapping up.
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new concerns this morning about the salmonella outbreak that's spread to 26 states killing at least one person and sickening dozens more. federal health officials say it may be more resistant than usual to antibiotics. the outbreak traced to a ground turkey production plant at cargill in arkansas. 30 million pounds of potentially contaminated turkey meat have been recalled and renewed questions about the safety of our food. david at chinson former chief medical officer for the fda joins us from washington. thank you for being here this morning. >> pleasure. good morning. >> the first signs of this were, what, back in march and then -- >> that's right. >> in may, you know, they sort of discovered it was coming from ground turkey, but it took them until july to call cargill and say, maybe you better get turkey
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meat off the market. when you look at it that way you think to yourself, that just seems not a good working system. what should we take from that? >> right. that's a long time. and throughout that time, people are getting exposed to potentially contaminated food. but this is not that unusual with our public health system and maintaining robust structures at the local health authority level, state and federal is all key in not just preventing these problems but when they occur as you point out, jumping on them quickly, finding the cause, finding the food, and forming consumers and preventing exposures. it's key. >> the president signed a food safety modernization act back in january. has that had any effect at all. >> not yet, no. it's going to take a while that is. and that actually is focused entirely on the food and drug administration. turkey's regulated by the department of agriculture. they don't come under anything to do with this new act. unfortunately, this new act, which is really important, and it's key for protecting the american consumer, is
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essentially an unfunded mandate for the fda. they don't have the resources to do what they need to do. >> it doesn't seem they're likely going to get the resources. if they don't have the resources to do what they would like to do, why have a department at all? i mean -- >> well, that's a bit extreme. that's -- they have got money and they are doing things. i think the important part about this, is this new authority will give the fda to right the rules. and then it's up to industry to look at those rules and to follow the new regulations and requirements. what fda will struggle with is providing enough inspection and oversight to ensure those rules are being enforced. but this is a complex issue and the regulatory structure needed some updating which this act did in january this year. >> so in your estimation, when you look at the overall picture in finding out that it was ground turkey to blame, i mean how did the government do? >> well, in all of these
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situations we all look at this and say the government could do better. and fingers are always pointed at the food and drug administration or the department of agriculture in these types of situations. i think an important message here is it's not just what goes on in washington that's important. it's what's going on at the local and state public health levels because food safety usually begins slowly. and we're not just seeing budget cuts at federal level. we're seeing them at the state level and local level. so when problems occur, it takes even longer to get inspectors out, to get interviews of patients, because you don't -- unless you talk to the people who get sick, you can't figure out the cause. it used to take a few days to do that. now i believe it's taking longer, weeks. these things go on longer. it really is -- it's this need for this integrated and well-funded system. >> so what are we to do? i mean, it's like turkey meat, supposed to be meat that's healthy for you and you're afraid to eat it, e. coli scares, afraid to eat beef,
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scares concerning vegetables. what are we supposed to do. >> take the ground turkey as an example. that's in the headlines today. with regard to that, a consumer should assume even though the likelihood may be low, they should assume that this product has got salmonella in it. and based on that, when you pick it out of the case in the supermarket, just assume that the outside of that packaging could have contamination, treat it carefully, wash your hands, cook it properly, make sure it doesn't cross contaminate other foods, clean the surfaces, and if you've got leftovers, make sure you refrigerate them. so consumers should just make that assumption to play safe. it's the best way they can do to protect the family. >> david, thank you so much for being with us this morning. we appreciate it. >> thank you. pleasure. could it be the end of garbage? a couple of yale undergrads say they've discovered plastic eating fungi. fungi. >> fungi i would say. what do i know about these
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things. >> you are a pretty fun guy. researchers took part in a class that travels to the rain forest to collect plant samples many we've never encountered before. they say it's too early to call it a cure all to pollution but the potential to break down manmade materials could be endless. >> that's incredible. >> all that garbage we make, the plastic garr gaj filling the earth with plastic garbage if we could send in microbes to eat it up. >> make less garbage but that's another story. >> you seem falsely enthusiastic. >> these great idea comes down the pike and nothing ever happens. that's a little cynical of me. >> obviously. >> it's 6:45! >> i know. >> holy smokes. >> stop it. >> we're not going to tell carol about what happened on the markets yesterday. >> don't tell carol about the 500 point dow drop. >> coming up next, we're not going to talk about -- nothing happened on the markets. protein test that no one noticedp thousands of angry teachers marching on washington, d.c., overshadowed by the debt
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ceiling crisis. why every parent needs to pay attention to what is happening in our schools. 46 minutes after the hour. ckels. if you have painful, swollen joints, i've been in your shoes. one day i'm on p of the world... the next i'm saying... i have this thing called psoriatic arthritis. i had some intense pain. it progressively got worse. my rheumatologist told me about enbrel. i'm surprised how quickly my symptoms have been managed. [ male announcer ] because enbrel suppresses your immune system, it may lower your ability to fight infections. serious, sometimes fatal events including infections, tuberculosis, lymphoma, other cancers, and nervous system and blood disorders have occurred. before starting enbrel, your doctor should test you for tuberculosis and discuss whether you've been to a region where certain fungal infections are common. don't start enbrel if you have an infection like the flu. tell your doctor if you're prone to infections, have cuts or sores, have had hepatitis b, have been treated for heart failure, or if, while on enbrel, you experience persistent fever, bruising, bleeding, or paleness. get back to the things that matter most. good job girls.
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ask your rheumatologist if enbrel is right for you. ♪ good job girls. ♪ ♪ ♪ introducing purina one beyond a new food for your cat or dog. 47 minutes after the hour. let's have a look at your headlines. u.s. stock futures are down, one day after stocks tanked on wall street. this was their worst single point decline since the 2008 financial crisis. overseas, markets in asia are closed. they closed lower and in europe where trading is under way the
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markets are negative. july jobs report is out at 8:30 eastern time. we'll find out how many jobs were gained or lost last monthp with we're expecting a gain of 70 to 80,000 jobs. syrian opposition vowing more protests in the city of hama. follows reports that government security forces have taken their bloody crackdown to a new level, killing at least 109 people in and around hama. the u.n. says the famine in somalia could kill 600,000 children. the red cross is pushing for $87 million in donations to help over 1 million somalis who are facing starvation. a texas jury meets today to decide the punishment for warren jeffs. that same jury convicted jeffs on two counts of sexual assault on a child. he faces a maximum of life in prison. president obama unveils his plan to help unemployed veterans find jobs today. designed to help military men and women make the transition into the civilian work force. it offers business tax incentives to hire veterans. you're caught up on the day's headlines. "american morning" back right
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after this.
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you know with all the commotion in washington over the debt ceiling crisis last week, and last weekend, no one seemed to notice that thousands of teachers, parents and students were marching on the capital, demanding education reform and standing up for teachers quite frankly. this week's education overtime correspondent sam shelltain was at the save our schools march to find out why teachers are so concerned. >> reporter: what will it take to transform public education? >> why ru hot and mad -- are you hot and mad today? >> reporter: is it anger and
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bull horns. clever posters and language. will it take me, beat boxing to the words of the notorious ph.d. >>. ♪ they've exported our jobs treated us like fools now they're working hard to take over our schools ♪ >> reporter: thousands of teachers, students and parents from across the country were here to tell president obama that his current reform policies are definitely not the change they seek. >> why did you decide to come to d.c.? >> i am so disturbed that teachers are being made to blame for our society's problems. >> this privatization model is a some children approach to public education reform. what we need is an all children approach. >> reporter: if the march is to save our schools from the policies of the obama administration, what should we be doing instead? renay moore is a national board certified teacher from the mississippi delta and a former teacher of the year. >> teachers, particularly our best teachers, have been largely left out of the conversation in terms of the actual
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implementation and establishment of these policies. >> reporter: among those policies none is less popular than the use of high stakes tests to determine which schools and teachers are successful. indeed, under current policy as many as 82% of our nation's schools could be labeled as failing this year. the rallies headliner, nyu education historian said president obama's race to the top policy punishes teachers even more. >> the basic idea of federal aid to education is equity. it's putting the money where the poorest kids are, not sending the money to the state that has the best grant proposal. >> reporter: clearly, among the marchers there are real challenges going forward and broad coalitions that need to be built. >> we're going to be talking very seriously about english language learners, that segment of the population growing at the biggest rate in our public school system, then we really need to be focusing on this community in a wholistic way, not a way that reduces them to their language. >> reporter: everyone i spoke
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with agreed lasting change will take much more than rallies and rhetoric. but they also felt that the first step was to make themselves loudly, undeniably, visible, and to demand their rightful seat at the table before it's too late. for education overtime, i'm sam shelltain. >> there was real star power at last weekend's teacher march. actor matt damon was there showing his support for teachers. his he's filming a movie right now so he's bald for that movie but his mother nancy carlson page a university professor. i asked her about the negative perception of teachers, high stakes testing, how to raise a son to grow up like matt damon. good advice there. you can watch that interview tomorrow morning on cnn, it airs at 9:30 on "your bottom line." she calls him matthew. how do i raise a matt damon. well, matthew. it's cute. now your chance to talk back on one of the big stories of the day. pegged off the criticism aimed at new jersey governor chris christie, a republican for
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appointing a muslim-american judge, sort of backwards. chris christie was standing up for this muslim-american lawyer he appointed to new jersey state judgeship and conservative bloggers came out against him, called him an enemy of the state. our question was pegged off that. when will our fears about muslim-americans fade? here are some of your responses. they will only fade when there comes another minority to hate. in case anyone hasn't noticed it went african-americans and then hispanics and now muslims. the country loves to hate its minorities. i am one. >> this from james -- keep those comments coming. we appreciate them. facebook.com/americanmorning. facebook.com/americanmorning. and we'll have more the next hour. when the dow is down, what better way to lift your spirits than late night laughs.
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the presidential birthday edition. >> happy birthday today to president barack obama. 50 years old today, barack obama. [ applause ] we got some lovely presents. and what can you really get for the president? he got some lovely things. china, china gave him an extension on his rent. >> oh. >> that was good. and -- [ applause ] newt gingrich gave him a $500,000 gift certificate to tiffany's. >> michele obama urged her husband's supporters to sign an e-card for his 50th birthday which explains why joe biden has magic marker all over his computer screen. >> it's barack obama's 50th birthday. [ applause ]
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that's right. it's that time of year again, folks, when the president tries to convince us he was born. we're not buying it, obama. everybody knows american presidents are born in february. that's why it's called president's day. not the only one who's angry. so is sean hannity's voice. >> very funny. >> listen to him all day. >> i know. ahead next hour, smelling a rat in cyberspace dozens of u.s. companies and government agencies hit by cyber hackers in something called "operation shady rat." do we have the weapons to fight a war that's being waged in the matrix? welcome back, jogging stroller. you've been stuck in the garage, while my sneezing and my itchy eyes took refuge from the dust in here and the pollen outside. but with 24-hour zyrtec®, i get prescription strength relief from my worst allergy symptoms. it's the brand allergists recommend most.
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wow. the fear factor sending stocks across the globe down sharply this morning. the selling fueled by an ac cell rating debt crisis new concerns about jobs, what it means for your money and the recovery on this "american morning."
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good morning to you. happy friday! it is august 5th. welcome to "american morning." >> tgif. i think. >> it is. it's friday. how could it be a bad day. >> can't be as thursday one hopes. >> i know. don't tempt the fates. >> talk about your money. unless you were under a rock you know this story. markets across the globe are reeling, selling driven by fears of a debt crisis in europe and a stalled recovery globally. our economic growth is slowing in the united states, manufacturing numbers are down, consumer spending is down and today, in just two and a half hours from now, we will -- is it two and a half hours? one and a half hours. we'll learn the number of jobs created last month whether it was up or down. we're expecting it to be up by about 75,000 jobs. if that's true that's not great news. if it's worse it's bad news. >> just not enough. just not enough. what we've been seeing in the jobs market. what we're seeing is bigger than the jobs market, about the whole world, big plays with people with a lot of money in currencies and bonds and debt instruments and in stocks.
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anyone with a 401(k), you watched yesterday as the dow dumped 512 points, that's more than a 4% drop. yesterday capped a brutal couple of weeks. take a look. in just the past ten trading days, the dow, nasdaq, s&p lost more than 10%. that's what we call in the business an official correction. that ain't good. >> no. that's painful. but let's go to our nina dos santos in london for a look at the markets overseas, which aren't exactly better. >> yeah. what we're seeing is an eighth straight day of losses and the european markets obviously taking their cue from the very heavy losses we saw overnight where you were on the united states. those indices falling in excess of 4%. we woke up with european markets falling in excess of 3%. things are slightly better at the moment but close to the interday lows. we had stocks in asia which are trading sharply lower for the day as well. all of these concerns really are on the back of, of course, the jobless figures that are going to be coming out where you are later on today.
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but also, ongoing concerns about euro zone leaders' perceived inability to get a grip on the crisis that now seems to be engulfing certain economies where i am that are deemed just too big to fail. economies like, for instance, italy and also spain. and this is where the question of lehman brothers 2008 crisis comes back again. many people wondering whether we're going to see a double dip recession. we'll just have to wait for those figures where you are later on today. >> nina, thanks. all right. so, here's the question. you asked it earlier, how bad is it likely to get? felicia taylor live in new york. today's jobs report was going to be the biggest thing we were talking about and everything has eclipsed this in the last week. i thought this thing might get time in the sun but yesterday happened. >> well, so what we're worried about today is the jobs report. like you said, if we get a gain of 75,000, that's great, but not enough to make a difference. it doesn't indicate that there's any kind of a trend moving in the right direction. if it comes anywhere below that,
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certainly you can see that there's going to be more selling. i would bet, and i shouldn't do something like that, but i think we're -- >> go ahead. >> i think we're going to see more selling today. there is a number of reasons why investors are uncertain in this economy in the united states. we don't have job growth, we don't have growth in any industry, any area that we can see. there's still no growth in housing. nothing in construction. and that's what the investors need to see. corporate america's making money. you and i were talking about this a second ago. definitely. that's because they're letting people go. it's not because they're growing their businesses. >> okay. well, you know, we always like to point the finger of blame in this country, right. a lot of people are blaming the debt ceiling deal for this. and this is really shaken the markets. i mean how -- what percentage of blame ought congress to get? >> a fair share. actually. and i've spoken to a number of different hedge fund traders, other investors on the street and frankly they're pretty angry about what's going on in washington. there isn't consensuses and that's what they need to see.
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they need to see some kind of certainty going forward and until they get that, they're sort of showing -- their au playing their hand and showing what ug they're upset about what's happened. should never have gone to the nth hour. >> the president's role in this. a lot of people are saying right now he should come out with this giant jobs plan. he should come out with something really bold. and maybe that would make a difference. >> it would make a difference. it definitely would. the one thing we haven't heard anything about is job growth. there are a lot of people in this country that don't have a way to pay and put food on their table. pay their mortgages. it's frightening. it's not okay. there needs to be some kind of green chute. i'm not a fan of that phrase, but something where there's positive sentiment. >> how can the white house do that when so many people, all they want to do is tear down anything he proposes as this is, you know, killing the economy, killing the economy. they're completely against anything he's for. >> until we see some kind of job growth in this country, we're going to be in the same
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situation. corporate america isn't going to put themselves on the line. they're not willing to do it. they have to make money for their shareholders. that's their number one priority. washington needs to get a grip and hear that message. >> all right. we want to bring in -- >> i'm liking felicia. >> let's bring in investment adviser matt mccall on that point that felicia makes. matt is the president of penn financial group. on that point there is one thing that is working in america and that is corporations are making money. in part by the way for all of our talk about outsourcing the one reason american corporations are making money they're making it -- bringing it back from places where they're making it overseas. there is demand in other parts of the world. you're saying that's the one hope right now? >> it is the one hope. i mean the demand here is very low and a big reason for that is, where's the confidence? people have money. savings rate in the last month went up dramatically. people have no confidence in our administration, in anything else that's going on right now, so we're not spending. so where do these corporations get money from? mcdonald's is a great example.
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majority of their sales growth coming from? >> not america. >> asia. looking at the emerging markets that trend will continue for years ahead. >> that was the concern yesterday. yesterday's concern was an international concern. wasn't about a weak u.s. about a weak rest of the world. if you're seeing the rest of the world slow down and these governments maybe not speaking very strongly about how they're going to be able to bailout their own economies now you got trouble, worldwide. >> yeah. what happens is we're still the world leader. we may be slowing down in growth but we're the world leader. if the u.s. slow downs everybody else is going to slow down with us. we create the largest demand out there. wlaeps is a lot of these other countries will step in and say they're going to blame their slowing growth on the united states and pointing fingers at the u.s. and say it's the united states' fault. gives them something to fall back on. >> your take on washington, i like his take on washington. do you think there should be a big jobs plan like carol suggested or washington needs to get out of the way, not in the way? >> little of both. my play is sitting down with the
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president, the president keeps coming out with extend unemployment, have a reduction of payroll tax. unfortunately that does not force a corporation to hire somebody. what you need to do is concentrate on small business and lower taxes and regulation. less government at the end of the day is what happens. and then people will start spending their money and corporations will come out and start hiring. you're not going to hire if payroll tax -- only if demand increases. >> i love a lot of your analysis but if there were demand none of that stuff would matter. >> true. how do they create demand. that's the question. >> i was going to ask if from a normal -- i'm not a business expert. i freely admit it. as a consumer, as an american citizen, i feel pretty powerless right now. i feel like everything has control over my financial health, including businesses on wall street, who won't spend those enormous profits to hire people. is there anything that somebody like me could do? to force someone's hand or do i just sit and wait until they
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figure out what they want to do -- >> get out there and buy a new pair of shoes. if everybody buys a new pair of shoes money goes in the economy. a lot of people have the money. the problem is all you keep hearing is negativity. you convince yourself i don't have money. you may still have a job, may make the same money as last year but convince yourself i don't have money. i'm going to sit on cash. that's where government comes in. a lack of confidence in our government. >> ken rowgof who written a book says we have a seven-year period of dangerous times here and this is exactly what happens after a huge bubble burst and a financial crisis. we are living through what history books tell us should be happening. and the fact that it is so difficult it's going to feel difficult a lot of people who run businesses say we're sitting on cash because that's what the american people should be doing too. we're sitting on cash because we don't know what's going to happen. if we've been sitting on a little more cash ten years ago this wouldn't have happened to us. it's a natural reaction. >> that sounds bizarre to me because the problem that consumers said they were spending too much money, they
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were spending money on things they couldn't afford. now -- >> borrowed money. >> being responsible and now suddenly that's a bad thing and it's our fault. >> consumers have too much debt. consumers still have too much debt. that's still a -- that's still a bubble that we are still working through. and it's just -- i mean it's horrible. horrible. but that's the -- savings rate is now 5%. >> 5.4%. still compared to other nations not saving as much as we should be. >> happy friday, everyone. interesting conversation. thank you so much. new for you this morning, congress may have left town, but yes, they're still making deals. they are. senate ma jordi leader harry reid announcing a bipartisan compromise, when was the last time you heard that? they figured out how to fund the faa and send tens of thousands of government construction employees back to work. here's the deal. the senate will accept a temporary spending bill passed by house republicans and transportation secretary ray lahood will use his authority to block the bill's spending cuts
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targeting some smaller airports. people will start getting their paychecks again and look, lawmakers didn't have to leave their vacations. >> still to come this morning despite a new round of global condemnation syria steps up its brutal assault on anti-government protesters in the city of hama. this isn't a story about the water on mars. it's a lake in texas. blood red after a month of stifling heat and a year with barely any rain. the latest on the lethal heat wave ahead. it's ten minutes after the hour. ♪
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welcome back to "american morning." syria's crackdown on dissent is reaching a new level of brutality and that's saying something. scores of people killed in hama the center of the syrian uprising the u.s. is condemning the regime of president bashar al assad saying that it has lost legitimacy after witnesses reported civilians being executed in the streets. >> it's horrific, it's
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appalling, be he's massacring his own people who are coming out simply to express themselves peacefully. it's absolutely unacceptable, appalling behavior and it deserves not only the condemnation but the full force of the international community to pressure that it stop. >> syrian security forces have killed more than 200 people in hama, just since last sunday. the heat wave suffocating the southern plains not letting up today. 15 states now under heat advisories again. just to give you an idea of how hellishes they conditions are take a look at this blood red lake in texas. bacteria that feeds off the hot conditions, they've taken over what's left of the water. on top of the lethal heat, texas is in the midst of the most severe drought in state history. air conditioning theft a hot crime in texas these days. one of them led to the death of a 79-year-old woman in dallas. she died after the air conditioning unit was ripped out of her home. staying cool a matter of life and death, power companies are
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urging people to use only what you you need, set the thermostat at 80. they're warning of rolling blackouts with power usage setting records for three days in a row now. rob marciano in the extreme weather center. i cannot tell you, wow, i don't think there's anybody out there who can hear somebody stealing an air conditioner in times like this and the fatality of an elderly woman and scoundrels would make a horrible situation worse. we're going to have another hot day there, aren't we? >> we are. pow power plants at the brink, taking retired power plants and put them back on-line to give this area enough juice. they're going to need it another couple days. heat indices up. there's pockets especially north and east of nebraska where temperatures have subsided somewhat. but south of there, it's warm. wichita falls you continue your streak of 100 plus degree days. mcalister seeing 108, dallas,
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oklahoma and austin seeing record-breaking high temperatures again yesterday. we may see them again today. we don't cool down much. 108 in dallas. 110 in oklahoma city. these temperatures are not heat indexes. this is what's measured in the shade. doesn't include humidity. 107 in dallas. we cool down a degree maybe another degree on sunday. we really don't see a break in this until maybe the middle part of next week. here's emily, what's left of it. it fizzled hit the mountains hispaniola. we'll let you know if it becomes a threat. places like atlanta yesterday morning, this is how we rolled into work early about 3:00 a.m. a lightning show across the atl. it was gorgeous. of course it was a little bit wet. splashing through the parking lot to get to work. nonetheless, it's not -- if i can find an alarm clock, probably one out there or an app, that has thunderstorms, a thunder wake-up call, you know, as opposed to that annoying buzzing that would be music to my ears. that's what i woke up to
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yesterday. >> that would be excellent. >> yeah. >> that's good. you have something bordering on a fetish with thunder and lightning. >> yeah. i suppose. most weather guys do. >> that's good. i suppose that's -- >> not a bad thing. >> as far as fetishes go. >> there could be worse fetishes. >> let's not talk about fetishes right now, shall we? thank you, rob. we appreciated your weather forecast. >> all right, guys. now is your chance to talk back on one of the big stories of the day. our question this morning, when will our fears about muslim-americans fade? i bring this up because the governor of new jersey chris christie, a republican, and tea party favorite, has had enough of it. >> this shariah law business is crap. it's just crazy. and i'm tired of dealing with the crazies. >> he was defending his choice of sohail mohammed for a state judgeship. conservative bloggers were fur russ accused him of being in bed with the enemy, feared mohammed would make judicial decisions based on the koran or shariah
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law. >> shariah law has nothing to do with this at all. it's crazy. it's crazy that the guy is an american citizen. >> it has been almost ten years since 9/11. osama bin laden is dead. and yes, there have been arrests of muslim extremists within the united states and yes, we do need to be vigilant about homeland security. but should all muslims be suspect? according to the "new york times" more than two dozen states have considered measures to restrict judges from consulting shariah law. our talk back question, when will our fears about muslim-americans fade. talk to us on facebook, facebook.com/"american morning." facebook.com/americanmorning. getting good responses on that. >> it's crazy! >> it's crazy, exactly. >> still to come this morning, for the last year they've been on the front lines in afghanistan. now a group of army soldiers face the challenge of returning home. >> and new details about "operation shady rat." a new response from china,
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22 minutes after the hour. minding your business this morning, world stock markets dropped sharply as global economic worries grow. stock indices in japan, hong kong, australia, korea, closed with losses at the 4% level. in europe, markets there are trading lower, one day after the dow fell 512 points. here in the united states, thursday's close was the worst one-day point drop for the dow since the financial crisis in 2008. a new jobs report out today. the unemployment rate in july is expected to stay at 9.2%.
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economists predict 75,000 jobs to be added to the payrolls that's not enough to boost a recovery. we'll have that news at 8:30 eastern. some one out of seven americans rely on food stamps according to a new report from the u.s. department of agriculture. as of may almost 50 million americans were using food stamps, an increase of 34% from two years ago. aig reported its first profitable quarter since the financial crisis when the u.s. government bailed out the global insurance giant to the tune of $180 billion. the company reported a net income of $1.8 billion in the second quarter. and linkedin in the business social network reported a surprising profit in its first earnings report. it netted $4.5 million, that beat expectations. it reported sales more than doubled from a year ago. don't forget the latest news about your money check out the new cnnmoney.com. "american morning" back right after the break. i'm always looking out for small ways to be more healthy. like new splenda® essentials™ no calorie sweeteners.
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wow. cool. part of the troop surge in afghanistan now a group of army soldiers is talking to jason carroll about the end of their deployment and making the transition from the front lines to the home front. jason joins us now with a final installment of his special series this week, "a soldier's story." a fantastic piece of journalism and this is the last installment. amazing. >> last installment. i admire these soldiers for their honesty, especially when you hear what they have to say on the subjects that we're talking about. sergeant shorter and his men are now just days from returning home. they talked to me about the challenges they expect to face on the homefront, adjusting to life not fighting a war and about the war itself, namely whether it's the right time for a draw down.
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>> reporter: how many people think the surge worked? now we're hitting to the point where you hear about the draw down and i'm curious what your thoughts are about the draw down? i've heard both sides. >> we've all lost somebody over here, and if we think we're pulling out too early, it's almost like, those guys were -- gave their life for nothing, you know. i don't mind staying over here until the mission's complete where i know this government and the police and army can take care of it. >> do you feel like you're pulling out too early? >> in a way, yes. >> it's going to take forever to get this whole country, you know, idly where people want it to be. so at some point they're just going to have to take over or we were egoing to see how they do. >> i totally support the president's decision. cost too great. we pay a great cost. ten years of war, you know, and still no tangible solution.
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we can sit here and debate all day whether or not the afghans are ready, but you know what it's about time to put their feet to the fire. >> what do you think about this idea of people having tough time adjusting when they get home? >> oh, i believe it's true. i mean, some people do. >> my first tour, i had to deal with that, you know. it hurts almost. it's like, how dare you go on with your life when i was over there fighting. that's how i felt personally. >> do you remember how you were able to deal with its first time? >> first time i didn't deal with it too well. >> what does that mean? >> got pretty good at drinking. and i held a lot of it in, you know. everything i saw that first tour, everything we went through. >> when i got here, things you to pick up, certain things, you have to watch people's hands, way people walk. when i went home i went to the mall, being around all those people, kind of freaked me out because watching everybody's hands and stuff like that, i freaked out. i had to leave the mall. >> first time, you know, i
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almost lost my marriage because of that. i didn't talk about it. you know, i thought people didn't care. i sat like carlisle said in a mall, i watched people. just went about, not really understanding there's a war out there, soldiers are dying every day, and i felt angry. i learned from that experience and my wife, you know, she kind of like smacked me around and said you know what, you're faulting your family members for not understanding. the way you deal with it, you talk to them, you find ways to release it so it doesn't effect you. >> very frank discussion with those men post-deployment problems such as sleeplessness, marital problems you heard about there, even drug abuse are just some of the issues some of the soldiers face in trying to adjust to life after their deployment. the army does have counselors available for the soldiers to speak to and they encourage them to seek out that help when they head home. >> the question is, do they do it? one young man said he was having drinking problems. how did he solve that problem? >> he eventually did seek help
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and for him, it worked out. and you know, one of the other points here, you saw sergeant shorter, he has a strong family foundation and even sergeant shorter had problems. even when you have that solid background, it's not a clear way in some cases of even finding help. >> even for the family members, watching this story, when your soldier comes home, you think that's the end but that's the beginning of the end, because there's all this you have to work through together and the communication. just to understand the person is there, but the person has changed a lot. >> for -- >> a lot of understanding with that. >> for all the thousands of men and women coming home, you know, after spending time with these people, my advice would be seek them out. don't be afraid to ask them questions. >> right. >> you know, nothing helps more than sometimes when they're being in public and you just walk up and say, good job. >> it was really telling when one young man said that he's sitting in the mall and resenting people and he's saying don't you know there's a war going on over there? >> we forget.
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we talk about debt, we talk about falling markets and we forget that every single day there are men and women still giving their lives, still fighting the good fight, every single solitary day. they don't want to be forgotten. >> all right. jason carroll. >> you did a great job of helping us not forget. >> we have it all on our -- on cnn.com/am. if anybody wants to catch more of it. >> thank you. >> there you go. top stories now. a shocking scene caught on tape. gunmen open fire on a philadelphia city bus packed with passengers. it happened back in june. the tape was actually shown at a hearing for the six people charged in the shooting. the passengers desperately scrambled for cover. remarkably, no one was hurt. highs of over 105 degrees expected through the weekend in the southern plains, power companies are warning of rolling blackouts and urging people to stay cool but cut back. power usage reached its highest level ever in texas this week. right now, the world's markets trapped in a vicious downward cycle. u.s. stock futures are in negative territory, one day
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after wall street had its worst day since the 2008 financial crisis. overseas asian markets recorded sharp declines and european markets are in negative territory. all right. according to the cia the second biggest threat, second biggest threat facing the united states today, is computer hackers. number one, is a nuclear attack. think of that. cyber warfare has become an enormous problem with hackers targeting our satellite systems and sensitive defense sites. that's why "operation shady rat" is unsettling. uncovered by the security firm mackfy and described a espionage scheme. they said there were 72 targets over a five-year period including 36 corporations, like the associated press, where reporters working on stories about china got hit by viruses, the international olympic committee was one of 12 non-profits hacked, 15 u.s. government agencies were also compromised, including an energy department lab and 12 u.s. defense contractors.
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now some speculate the attack has roots in china. but late last night, the chinese state newspaper came out and denied any involvement, calling the accusations irresponsible. colonel lleyton is a military intelligence expert and founder of crebrick lleyton associates and joins us live from washington and from philadelphia, duncan hollis, a professor at temple university. school of law. thank you to both of you. this is something we've been following growing alarm for the past five, six, seven years this has become more sustained and more sophisticated, if you will. mr. lleyton, let me ask you first, isn't china -- many of the reports and even government agency reports don't like to say specifically one state actor, but when you look at the targets, many say, it's clear, this is coming from china on behalf of chinese interests? >> christine, i think that one of the big things that you have to look at is, what is china's interest in this? it's sometimes very hard to attribute cyber attacks through
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a particular nation or to a particular group, but in the case of china, you have to look at what they're doing and how they're organizing their government to do that. for example, the people's liberation army has a direct eight that works what they call cyber warfare type issues, youth growth of their intelligence and warfare directate. that kind of emphasis from the state leads you to believe they're doing something in this area, whether they're responsible for all of the mcafee attacks that is hard to say. they have vested national interests to do so. >> would you agree with that? >> i think that's certainly the case. in fact, it's important to remember that it's not just china, it's the united states. we in the last several years set up our own u.s. cyber command engaged in similar activity in cyberspace as have dozens of governments adding to the -- making the environment more complicated in terms of the various actors that are now out
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there not just cyber criminals anymore but military. >> erp we' not talking about somebody getting your credit card number from the dsw shoe warehouse, your typical sort of organized crime cyber hacking. efforts by governments to gain an upper hand on other governments. one of the other things, cedric, i think is interesting here, what they're looking for are -- the united states has everything to lose here and that's what they're looking for. for things like sensitive military technology, at least that's what these patterns are showing. tell me what it is that we have that these cyber hackers want? >> let me give you an example, christine. the f-35, the joint strike fighter, they -- the chinese are alleged to have stolen terabytes of data that involve the construction, the design, all the ancillary parts of the f-35 and related defense systems. so, that's one thing we have they like. they wanted to take a look at what our companies are doing.
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one of the things you'll notice is, they go after things like what oil companies are doing, are they drilling in a certain area, what are the -- for example, the seismic study results that these people have conducted in various parts of the world and you'll notice in iraq, for example, that the chinese oil company, state owned oil company is very active in iraq and is going through each and every one of these areas and actually getting some of the leases to some of the oil fields there. so those are the kinds of things that they're interested in and that's just the tip of the iceberg. >> we know that there are concerns there could be ways to, you know, mess around with maybe the international credit card system, there are also ways -- when you look at military technology that's one part. but also the economy and power systems being able to turn on or off different parts of the power grid and that's something the people in the pentagon for years have been studying how possible that could be. duncan, let me ask you, because there are people i've talked to in covering this story over the past years who said they have no doubt this is how a war would
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start, a real war, starting in a way that we couldn't have imagined ten or 15 years ago. and then you're talking about defense secretary, you know, spending cuts. do we need to reorder the way we think about how we protect our country? >> i mean, we certainly need to think more seriously about cyber security. i think there's no doubt -- there's important interests to be protected in cyberspace and we need to think about how to do that. the reality is, i think we've seen in the mcafee report over the last several years people are starting to wake up and realize it's no longer just your computer or your computer network that could be in trouble, it's the things those computer networks run. and now computers run everything from pace makers to cars to the global financial markets to power grids. certainly one aspect of that has to be a better defense strategy. the problem i think is the nature of this technology, doesn't lend itself to defense
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only. you can't deal with these threats simply by building bigger walls. i think that's exactly what this mcafee report shows, the most sophisticated computer actors in the world can't defend themselves. it's a constant cat-and-mouse game where we build better defenses and then face new threats that are quite serious. >> for years, we've been hearing these gloom and doom scenarios, gentlemen, but i guess the overriding important thing to remember is that all of these countries are so interconnected, the u.s. and china, i mean each can hurt the other, in so many different ways in a way you hope that rules over everything else that no one would do something to really hurt each other if it came down to push came down to shove. colonelle lleyton thank you for joining us, duncan hollis, thank you so much. we'll be talking about this again soon. >> thank you. still ahead, everyone loves their cell phone, right? we know this. how much do you love your cell phone? wait until you hear how many cell phone owners would give up sex rather than their cell phones. >> that's sad and pathetic, isn't it?
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and where have all the shoe shiners gone? is this job a dying smart richard hits the streets of new york to find out some shoe shiners are adjusting their pitches to boost business. it's 39 minutes past the hour. you could save a bundle with geico's multi-policy discount. geico, saving people money on more than just car iance. ♪ geic what if we designed an electric motorcycle? what if we turned trash into surfboards? whatever your what if is, pitches to boost business. the n0 has custom solutions to make it happen, including mobile payment processing, instant hot spots,
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atlanta, good morning to you. it will be sunny later, 74 degrees. more thunderstorms will come later. didn't want to mention that part. >> thanks. >> it's not going to be an extraordinarily hot, only 84. >> as if we weren't hooked on our cell phones already, a new survey shows facebook and twitter are pulling us in deeper. 60% of teens in the u.k. said they were highly addicted to their smartphones and social networking is fueling that. and out of all smartphone users, 81% said they never turn it off. >> you're addicted but would you give up sex? another new survey from telenav shows how creepy the obsession is getting. one third of the u.s. population would rather give up sex for a week than their mobile phones. >> the way to keep your teens in line give them a drel phone.
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>> that was good. like theaters and pay phones, shoe shine stores are vanishing. they used to be on street corners everywhere in cities like new york. >> in nis economy the shoe shiners are facing extinction unless they adapt. here's richard roth. >> your shoes. look at your shoes. how long are you going to innor that, sir? >> reporter: if your shoes are scuffed you can bet don ward will let you know. partly because the recession has also roughed up the shoe shiners. >> this economy the way it is now, it's fallen off really bad. >> reporter: shine men like ward have had to adjust their style so customers will take a shine to them. >> i'm actually initiating to keep it alive. and i got to work a little bit harder because yes, people have gotten away from basically doing their shoes because with we're a society now of me, me, me, now, now, now, press a button it's there. convenience. >> reporter: new york city is turning into the city that never shines. >> you need to clean those.
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>> he's very compelling and funny and i see him all the time. but as far as going doing it, i'll do it at the office at the building. it's easier. >> people don't get their shoes shined very often anymore. >> reporter: grand central ter nall provided shoe shine stands to almost eight shoe shiners 20 years ago. that number has dropped to three. >> it certain lly was a busines very common decades ago around the city everywhere and we have the opportunity in the grand central neighborhood to continue to keep them alive. >> reporter: as the old story goes joe kennedy, jfk's father, claimed he avoided the 1929 market crash when he received a stock tip while getting a shine. but instead of wall street tyco tycoons, it's shoe shiners that need all the tips they can get. >> with the bad state of the economy we got to get back to the way things used to be. we just forget about a lot of things. believe me, i'm going to be pitching, clean your shoes. >> reporter: these street-level
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businessmen are expanding their services. >> the majority of the people wear sneakers and sandals. that's okay. i pumped up my game. i now clean sneakers. >> reporter: a fading profession may become a memory for consumers not willing to sit for a shine. ♪ there's a shine on my shoes and a melody ♪ >> reporter: richard roth, cnn, new york. >> maybe they should have that guy sing near the shoe shine stand that would attract business. >> i love getting a shoe shine. it's my guilty pleasure. >> you get the shoe shined. >> across the road. it's -- she shine up nicely. >> you're propping up a business. continue to do that. >> i feel better, when my shoes are shined i have a lightness in my step. >> do you sit still long enough to get your shoes shined? >> i e-mail, i'm on the blackberry and stuff like that. you know how it is. >> all right. >> morning headlines next including big news about mars. nasa scientists may have found evidence of flowing waterfalls. >> it's go time. dr. sanjay gupta is ready to rock the new york city triathlon this weekend. he's finding strength in
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numbers. he's live in our studios coming up. it's 47 minutes after the hour. with aveeno nourish plus moisturize. active naturals wheat formulas target and help repair damage in just 3 washes. for softer, stronger... ... hair with life. [ female announcer ] nourish plus. only from aveeno. uh oh, sesame stir fry from lucky dynasty. oh, me too! but mine's lean cuisine, so no preservatives. [ female announcer ] lean cuisine has 90 dishes with no preservatives and quality ingredients like farm-picked broccoli and tender white meat chicken. lean cuisine. >> morning headlines next up. >> morning headlines next up.
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any questions? no. you know... ♪ we're not magicians ♪ we can't read your mind ♪ ♪ read your mind ♪ we need your questions ♪ each and every kind ♪ every kind ♪ will this react with my other medicine? ♪ ♪ hey, what are all these tests even for? ♪ ♪ questions are the answer ♪ yeah ♪ oh 48 minutes past the hour. here are your morning headlines. u.s. stock futures in negative territory this morning. the declines coming one day after wall street had its single worst day since the 2008 financial crisis. world markets also following suit, they're down in asia and europe. power companies warning of rolling blackouts with highs in the 100s again today across the
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southern plains. many places in texas are closing in on records for the most consecutive days of triple digit heat. life on mars might not be -- may not be so far fetched after all. photos of the red planets are creating a buzz at na sa. that's because the channel in those craters suggest the possibility that saltwater is flowing on mars. and nasa scientists say where there's water there could be living organisms. a mission to jupiter is next on nasa's calendar. later this morning the juno spacecraft scheduled to launch. if all goes according to plan it will arrive in 2016. juno's camera will snap photos to help scientists study the planet's origins, structures and atmosphere. you are caught up on the day's headlines. "american morning" back right after this break.
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new york city sunny, 73 degrees and thunderstorms, 84. it should be later. have you ever been in the new york city marathon? >> look at me! i don't run anywhere. >> if somebody came after me with a bloody knife, i might think about running. >> i'm not much of a runner. you give a busy person something to do as if he didn't have enough to do. our chief medical correspondent good friend and practicing neurosurgeon is dr. sanjay gupta. because he a lot of times on his hands is training for a triathlon. >> you guys don't know how fun it is to exercise! i love to run. >> i do not understand how fun it is to exercise? >> especially when you're doing it with other people like sanjay
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is. >> absolutely. these feel good hormone surge through your body. think how faster you would run from the bloody knife. >> i think of pain hormones when i think of running. >> how long did you run? >> i waited until i felt bad and i stopped. >> 30 seconds! she ran 30 seconds and then stopped. >> i have always exercised somewhat but i started to actually set goals which i think is a big part of making this part of your life. when you do a triathlon you tell everyone about it and you got television cameras following you that is a lot of incentive to do this. small changes. do something every single day. break a sweat every single day. i incorporate my kids into my exercise routines because i didn't want to be away from them for the longer routines. >> the little one can run four miles now? >> i have the jogging stroller and take them to the park. diet is so important. people know this. one of the things i did small changes eat breakfast like a king and eat lunch like a prince
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and eat dinner like a peasant. keep that in mind. so your biggest meal -- >> we have the perfect shift to do that, right? >> trunk loading in business terms. >> i like it. >> we understand you're showing us your six-pack? >> that's right! >> figuratively. >> they told me you had a six-pack stand up. >> we have six viewers around the country we call them our six-pack. >> you're not taking off your shirt? >> not this time, ali. after the triathlon, maybe. >> actually, he'll take off his shirt if you take off yours. >> then we would not have any viewers. >> i would thank you both for not to. >> come on! we put this out for people who wanted to join us around the country. we picked six people who we thought would get most out of the triathlon. a lot of them didn't like to exercise, period. kendrick is actually a health care person. he was living in chicago. he weighed about 350 pounds at
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the beginning. never done this before. ate cheeseburgers pretty much every day and never cooked. he has lost about 30 pounds since this all started. biked 30 miles last weekend and can swim a mile now and going to do the triathlon. nina is 58. when i first met her she said 58 is the new 28 and dusting people half her age on the course. she has become so fast and looks terrific. dr. scott zaun is a pediatrician at the front lines of the childhood obesity crisis. he lost so much now he weighs what he did in the mid 1980s. he was on two blood pressure medications and cholesterol lowering medication and he is off those because of food, diet, and exercise. that is a little preview of who they are. >> that's terrific. so you're going to be participating in the triathlon with them? >> yes. >> fingers crossed. i don't know.
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i always thought -- i'm not a good swimmer so a triathlon would really freak me out. >> it's interesting. this triathlon, we swim in the had you h hudson river. >> that would freak me out. >> we had a problem with the sewage dump but it's clean enough now. you swim and then you bike up and down the west side highway for 10 to 26 miles and then you add a 10k. it's doable. the six-pack, never done this before and never thought they could do this months ago and now they are going to do this. >> next time you do it, i want to be on the team. you don't have to give me any pub. >> what? you heard it here first! let me show you what you'll be wearing. this is the uniform. >> oh, that's so cool! look! >> nice tight pants there, ali. i want to see you in those, ali! >> i'm not entirely sure that is
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going to work out all that well! >> that is worth the price of admission right there. >> next time you think about him, think of this. >> the real reason the stock market plunge? >> sanjay, good luck, my friend. >> these are for all of you. >> thank you. >> love it! >> that's so awesome! >> good luck to your team and congratulations already to those members of the six-pack for what they have done. that's fan tisk. >> if they can do it, maybe i can. maybe we can do it. >> you guys want to commit right here? ali? >> we will talk. we have to take a commercial break! this weekend, sanjay gupta m.d. live from the fit nation triathlon challenge. a culmination of the six-pack training. this saturday and sunday, 7:30 a.m. eastern. c300 sport sedan. but hurry before this opportunity...disappears. the mercedes-benz summer event ends august 31st.
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we take it on ours. this summer put your family in an exceptionally engineered mercedes-benz now for an exceptional price during the summer event. but hurry, this offer ends august 31st. a drop on wrot' across the globe overnight. i'm christine romans. fears of a debt crisis sparks a sell-off since 2008. we break it out coming up.
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i'm carol costello. one moment taking a quiet ride on a city bus and next, they are scrambling for their lives as the bus is showered with bullets on the streets of philadelphia. i'm ali velshi. a secret meeting between robert kennedy and marilyn monroe right before her death. it's in a new book that digs into confidential fbi files that some thought could be destroyed long ago on this "american morning." good morning. it's friday, august 6th. it is a good morning. >> that's because it is friday and it's saturday tomorrow. >> we know stocks won't fall on saturday. >> we begin with the unshakeable economic fear in fact,ing the markets across the globe. u.s. stock futures are down as we speaker and europe to asian, investors are pulling their money. >> hong kong's hang seng closed down at the close of london.
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trading under way. the ftse is also down. we are watching your money across the globe. let's start with nina. what we saw in the united states yesterday continuing overnight, didn't it? >> reporter: it did, indeed. we woke up worried and went to bed worried and the ftse down 2% to 3%. as ali was saying the markets in asia suffering and even heavier percentage declines. all of this on the back of concerns about the states of the recovery or, indeed, the potential of a double dip back towards the recession for the world's largest economy like, for instance the united states and also the euro very much in the eye of the storm. we got a lot of concerns about debt crisis to italy and also spain. let's put this into context for you very, very briefly, christine. the u.s. and european and world stock markets now down by 2.5 trillion dollars. just the first week alone of this month and that really puts things into context for all of
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those people who are worried about their savings, their pension funds and even gold hasn't managed to shine during this time. we are seeing we have woken up and cash is once again king like back in the days of 2008, though, we should point out the markets have had about two years worth of gains and this is a correction that some investors say was warranted and was in the coming a long time. >> nina, thank you. >> two years worth of gains has been very, very significant. that's a good point. let's go to felicia taylor at the scene of the crime, the new york stock exchange. folks are rolling in now and should come in the next half or so. what are you thinking? >> i think people are still concerned and a lot of reason to think the markets are opening to the downside. the futures down about a quarter to a third percent pretty much across the board the dow and nasdaq and s&p. you got to remember that a lot of the selling that took place yesterday had to come to a stop so we may see some of those continued selling pressures at the opening bell.
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the other, obviously, big thing to worry about right now is the jobs number which is coming out in about 30 minutes. that's a key factor for all investors right now. it gives a snapshot as to where we're headed. is the number coming in line? if it comes slightly below, we should see added pressure to the downside. >> felicia, we will be watching the whole world will also. we will check in with you in a little bit. thank you. a lot of folks looking at their stocks and 401(k)s this morning wondering whether they should sell. earlier we talked to an investment adviser matt furcal and asked him what advice he would give to investors and whether fears of a double dip recession are justified. >> you have to take a deep breath and do yoga this morning maybe and go back to the markets and check out the jobs numbers and don't make any harsh decisions right now. think about right now and 2008. 2008 company profits were falling. banks were overleveraged.
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this quarter is on pace to be the best quarter in three and a half years so everybody is flushed with cash right now. >> another point to ease your fears this morning, yesterday's dow dropped while it was one of the biggest point drops we have seen, i think, ninth biggest point crop in the dow's history. the percentage drop is what really matters. it was the 116th worst percentage drop. it's still a little perspective. >> it just shows you we have been there before. we have been been there before. >> many times. >> in less than 30 minutes we get the latest jobs report from july. it's an important report and often a market mover. this is probably going to drive the markets today and when numbers come out, we will break down what it means for you, your job, your recovery with tig gilliam. adecco group north america owns jobs that are placement firms and job train specialist. >> they place temporary workers. he has a real sense where jobs are. >> he will be able to look outside of the numbers and tell
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you where people are getting jobs and how to position yourself. >> that will come your way at 8:30 eastern time. passengers caught in the cross-fire on a philadelphia city bus. surveillance cameras captured the incident as the gunman opened fire. the incident actually happened back in june. the tape was shown at a hearing for six people charged in the incident. it will go up and over a hundred degrees again across the southern plains today. >> wow. >> it just won't budge. take a look at this blood red lake in san angelo, texas. this is bacteria that literally feeds off the hot conditions and it's taken over what is left of the water. >> on top of the lethal heat, texas in the midst of the most severe drought in state history. >> i know. it's just terrible. ed lavandera is in dallas this morning. are you still stand by that swimming pool? i'm waiting for you to jump in. >> oh, my goodness. that will drive away all of your viewers, you know?
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>> reporter: this is a favorite spot in town. massive gas station and big for truckdrivers. so hot around here they decided to put in a pool. this heat has been taking a toll on so many people, but it's been doing it in many different ways. these days, when the sun breaks through the horizon, it comes with the sense of dread. it doesn't take long for triple digit temperatures to lock a suffocating grip on the southern plains. >> this system is gone, nothing there. >> reporter: that dredge struck the heart of lucy harris' dallas neighborhood. her 79-year-old neighbor deloris grissom guide in her home. the medical examiner said the heat caused her death but lucy says her friend didn't have to die. someone stole the elderly woman's air-conditioning. >> she said her house is hot. i said because your air-conditioning unit is gone. >> reporter: the unit was ripped out of the cage. the family put in a new one.
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grissom reported it stolen and two days later, she died. what do you think should happen to the people who stole this air-conditioning unit? >> they need to be put away. that is what needs to happen. they need life in prison for doing stuff like this. she died so they need to be in prison. >> reporter: protecting the most vulnerable is an urgent concern for social service agencies like the salvation army. it's opened cooling stations, targeting the homeless. they give out free water and keeping emergency shelters open 24 hours. >> this is every year. >> reporter: shelter director michael allen says it's a matter of life and death. have you seen people who have come in here with hest exhauat exhaustion on the verge of passing out. >> uh-huh. sometimes guys are passed out at the front gate. we have to bring them in. >> reporter: passed out from the heat? >> uh-huh. >> reporter: some of the hottest spots in major urban areas are on the roadways.
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>> this is teresa. can i help you. >> reporter: inside the command center of the north texas tollway authority they are on the lookout for stranded drivers. they can use heat sensors to monitor roadway temperatures in real-time. >> when someone breaks down and they are out in these kind of temperatures on a roadway system, it's very dangerous. >> reporter: the numbers are staggering. workers are recording temperatures of 105 degrees, 18 inches below the toll roads. that can cause roadways to buckle and crack. but this is the most stunning number of all. if you're standing on a paved bridge in this urban jungle, temperatures are reaching almost 142 degrees! >> the actual temperatures are going beyond what we have experienced in the past and we have not really seen roadway temperatures like this probably ev ever. >> reporter: two words that people around here are just getting tired of hearing -- no relief. that hundred degree mark will probably be hit here again today, making it 35 straight
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days and the record all-time here in dallas/ft. worth area 42 days we will hit that a week from now. >> ed lavandera, try to stay cool. let's head to the weather center in atlanta and check in with rob marciano. i think people are wondering why this is happening. is this a blip or is this a sign of summers to come? >> as the globe warms, we certainly are more susceptible to more drastic heat waves like this, yes. the good news here for the next 30 days is that most of the heat has shrunk down to the south and the west. folks who live across the western great lakes and northeast you'll not see a july like we saw. it will still get hot and temperatures over 90 but not numbers like this across the northeast and we saw those a couple of weeks ago. wichita falls, 111. dallas 108 and oklahoma city 108 and austin 107. some of the co-op stations, we
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saw preliminary records broken that were over 110 yesterday. we do see a little bit of relief in sight but notice how slow and minuscule it is. 108 the expected high temperature today for dallas. looking ahead towards tomorrow, 107. looking ahead towards sunday, 106. by the time we get to next week, ed mentioned the streak of keeping temperatures over a hundred. we will see a cool down next week but still probably break the record over a hundred degree days. maybe cool down to 100, 99 next week. tropical storm emily has fizzled but the circulation may reemerge north of hispaniola. the mountains tore it apart and luckily for haiti didn't see as much rain as we thought they would see. atlanta and charlotte, afternoon storms. kansas city, you'll see more rough weather. morning clouds and fog. san francisco, still warm in kansas city and still warm in minneapolis. 87 and northern wisconsin still
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warm. if you're a black bear and you have that thick winter coat, where are you going to go to cool off? into the kiddie pool! that's right! mamma bear and pop pa bear and the other little bears, everybody into the pool. thank you, becky, for sending this i report in. >> why is this a kiddie pool where the bears are? >> bears frequent backyards of folks on who live in the outskirts of town. obviously the black bears were smarter than most. >> i like how -- >> look at that! so cute! >> they are cute. come on! >> unless they are charging at you, they are cute! >> there you go, guys. >> thanks, rob. looks like somebody is trying to punch right through the cloud. check this out. >> look! look at this! oh, yeah! look at that! >> like a funnel cloud.
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>> oh, my god. it is a funnel cloud! >> nasty. >> you can see it! see it? >> yeah, there it is. >> that's a tornado! that is -- huh? yeah. yeah. >> that is one cool i-report. robert was almost underneath a tornado as it formed in florida. that twister went on to tear trees out of the ground and rip roofs off of a home. never seen that. >> i saw one a long time ago in iowa, very long. just open plain and then it's just this finger probing down out of the cloud. you see it go down and up and almost unbelievable to see it. it would touch the ground and looked like the dirt would just explode and then come back up. amazing stuff. five years now, you've been helping us tell the story from powerful images to political movements that changed the world. this month we are celebrating i report's fifth birthday.
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i love when you send us your stuff. >> today marks one year since the accident that trapped 33 chilean miners. where are they now? how many are still working underground in the mine? are they all rich? i hope they are all rich. that's coming up next. also ahead, the politics of anger. people feel frustrated with the government and raising their voices. which party suffers the most from voter anger? marilyn monroe rumors about her death. was it suicide or something more sinister? a separate fbi file suggested a chilling new scenario. 13 minutes after the hour. ♪ on our car insurance. great! at progressive, you can compare rates side by side, so you get the same coverage, often for less.
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♪ that's it i quit i'm moving on ♪ >> shaping up to be a typical day in washington, d.c. partly cloudy and 76 right now
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but expecting a high of 90 which sounds cool when you compare to what is happening in dallas. we are going to talk about the game of politics this morning, who is winning and who is losing. but i'm pretty tired of that. i think a lot of people are tired of that. people feel powerless and feel frustrated. how frustrated? in a "the new york times" poll 80% disapprove the way congress is handling their job and the worst response since they started asking that question in 1977. we heard from louisiana governor bobby jindal at the republican national committee summer meeting. stubbornness he says is good. >> it pays to be stubborn. they root for it like it is the highest possible virtue the sign of maturity and achievement in life. i found in government it pays to be stubborn and it pays to stick to your guns. >> joining us is john avalon and
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cnn senior political analyst and national editorial director, ron brownstein. welcome to both of you. >> good morning. >> good morning. >> ron, you're an expert in congress. when you hear bobby jindal saying that and the poll most americans are not happy with congress and in fact, the most dissatisfied with congress since 1977, do you think that lawmakers get the message or are some lawmakers of bobby jindal's mind still? >> i think many are of bobby jindal's mind still. if you look at the public reaction both right before and after this debt ceiling deal it turns out that americans do not like the spectacle of their leaders negotiating at the point of a grandpa. there has been a loss of esteem for all institutions in washington, congress, the president's approval rating has suffered and congress' approval rate hag suffered. in a poll this week, it was down. if you parallel that what happened to the stock market,
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yesterday is almost as if we are witnessing a simultaneous vote of no confidence in the american government and the american economy at this moment that is an om mus point for both parties. >> you hear bobby jindal saying that, though. it's sort of what does it take to get through to some people? >> is there a strong ideological wing especially in the republican party now. if you look at polling a portion of the republican electorate that is the most resistant to compromise of any part of kind of american mosaic at this point. if you look at the overall situation we are in, carol, we are pretty close to 50/50 nation again. neither side has the power to impose its will on the other certainly not consistently. one of the big messages in polling is the republicans in 2011 like the democrats in 2009 are failing to consolidate their break-through and hold support from independence and in that environment compromise is really the only possible way to proceed because neither side has enough of a decisive advantage particularly in public opinion to impose its solution on the
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other without giving some ground. >> i'm hearing you you. the american people are hearing you. john, if people feel power less, they feel powerless because they feel their government isn't working for them. what can voters do? we have already voted out the bums in the midterm elections. what can voters do to change things? >> well, that really is the key question. what is fascinating is. don't forget independent voters are rejecting the two-party pro actively because two parties are more polarized than ever before. when they voted for dividing government decisively by over 15 points in both 2006 and 2010, they were voting for divided government because they felt it would create checks and balances, it would be a break on ideological overreach. here is the problem. they have gotten dysfunction and this has increased their frustrating levels even more and why a general rejection across the board and lack of trust in institutions that seems to be more preoccupied with special interests and playing to the
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base than trying to solve problems in a lot of the national interest and that is the real tension point we are at right now. >> al gore on his television network had an interesting idea and i just want to play a bit of what he said on current tv. >> we need to have an american spring, kind of an american change where people from the grass roots get involved again. >> he wants this mass demonstration on washington. but you kind of like didn't the tea party do that? >> not only did the tea party do that but you could argue 2008 did that as well in the other direction from president obama and his kind of grassroots mobilization. the problem, i think, we have is that, by and large, most elected officials believe they have more to fear now from compromising too much than compromising too little. they are more likely to be punished by voters in their ideological base for making concessions to the other side than they are by swing voters for being too intransigent.
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responsibility for this lays at the feet of the voters who have have not punished elected officials for this kind of behavior. one interesting question would be whether, you know, amid all of this kind of bipartisan discontent, whether some third force emerges. there is no question if you look at public opinion now, there is an opening, i think, for an outsider independent ross perot type candidacy and has the practical hurdles very real and formidable. as far as the share of voters roughly a third of independents saying they don't trust either party to make progress on the country's big problems there is an opening there as we have gone through this kind of series of turning to one party and turning away from it. >> go ahead, john. >> carol, i think the point that al gore was making had less to do with comparing american egypt and more about social revolutions and social networking and technology. here is a profound point. at the end of the day the two parties are still playing politics by industrialized age
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rules and use a system of redistricting and closed partisan primaries and hold on to power. a rising generation grown up with a multiple choice in every aspect of their lives and politics is the last place to have a choice between brand a and brand b and that will change. technology disagri gaits. it will fall away from that. >> we will see. thank you both for joining us this morning. we really appreciate it. >> thank you. now is your chance to talk back. our question this morning, when will our fears about muslim americans fade? i bring this up because the governor of new jersey, chris christie, a republican, and a tea party favorite, has had enough of it. >> this surreal law business is crap! it's just crazy! and i'm tired of dealing with the crazies! >> christie was defending his
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choice. conservative bloggers were furious and accused christie of being in bed with the enemy and fear muhammad would make judicial decisions based on the caron or surreal law. >> surreal law has nothing to do with this at all. it's crazy. it's crazy. the guy is an american citizen! >> it has been almost ten years since 9/11. osama bin laden is dead and there has been muslim extremists within the united states and, yes, we do need to be vigilant about homeland security. but should all muslims be suspect? two dozen states have measures. when will our fears about muslim americans fade? talk to us on facebook and we will read your comments later. still ahead, everybody's jobs report could be a rough one. everyone will feel the effects.
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this is important what is happening in the jobs market. so is any one career path in the bull's-eye like teachers? we are "minding your business." it's 24 minutes after the hour. price-line ne-go-ti-a-tor. so, you've been double crossed by other travel sites and now you want to try the real deal. yes, is it true that name your own price... ...got even easier? affirmative. we'll show you other people's winning hotel bids. so i'll know how much to bid... ...and save up to 60% i'm in i know the lady in leather travels on three wheels. wait, is that code? that's my secret weapon... ...naomi pryce see winning hotel bids now at priceline. but when she got asthma, all i could do was worry ! specialists, lots of doctors, lots of advice... and my hands were full. i couldn't sort through it all. with unitedhealthcare, it's different. we have access to great specialists, and our pediatrician gets all the information. everyone works as a team. and i only need to talk to one person about her care. we're more than 78,000 people
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"minding your business" this morning. world stock markets tumble as global economic worries grow. asian markets closed sharply lower and european stocks are down and trading right now. one day after u.s. markets saw worst one-day point point drop since the financial crisis in 2008. trading lower now ahead of the open. big investors want to move their stocks out of cash and into banks could be harder to do it. bank of mellon will charge depositors to deposit their cash at banks. oil giant shell received approval from the department of interior to begin drilling in the arctic ocean next summer. a sign that obama administration is easing clamp-down on offshore drilling after the disaster last year in the gulf of mexico. cries letter is recalling
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minivans because of a problem. the cause air bags to deploy unnecessarily. chrysler already recalled many minivans once before to fix a similar problem with the air bags. 1 of 7 americans rely on food stamps according to a new report from the u.s. department of agriculture. as of may almost 50 million americans were using food stamps, increase of 34% from two years ago. coming up next is anyone hiring? we have the july jobs report after this. "american morning" back after the break. at exxon and mobil, we engineer smart gasoline that works at the molecular level to help your engine run more smoothly by helping remove deposits and cleaning up intake valves. so when you fill up at an exxon or mobil station, you can rest assured we help your engine run more smoothly while leaving behind cleaner emissions. it's how we make gasoline work harder for you. exxon and mobil.
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just in to cnn the july jobs report. 117,000 jobs added to the economy last month, better than expected, according to new numbers just released by the bureau of labor statistics. the unemployment rate fell, folks. it fell slightly to 9.1%. i want to show everybody a little bit about what this trend has been. january, february, march, april, may, june, july of this year, you see how weak these two months were? actually, we had some revisions. they were better than what
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thought. may actually more like 53,000 jobs created. that is better than we thought. also june, 46,000 jobs created. that is more than twice what we had thought. so may and june were a little bit better and then you had 117,000 jobs created in july, better than forecast as well. so a little bit of good news overall on this front. i want to show you just, if i can quickly, i want to show you how that fits into the overall picture. this is that terrible recession. this is 2010 when the market is trying to come out of it. these are job gains. then you had this sort of growth, but a slowdown really in the last few months. we now on know now it is better than it had been before and gives you a little bit of the picture what the trend has been like trying to crawl out of this terrible hole here. ali and carol, i want to tell you that private sector job creation 154,000 jobs, that's a good sign. you want to see the private sector creating jobs. we saw a state government jobs 23,000 jobs lost. no surprise there.
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almost all of that is the minnesota shutdown. we had gains folks in manufacturing, retail and health care and short-term unemployment declined just a little bit. >> we should tell you futures have just turned around rapidly. we were negative going into this thing. everybody thought if we got to 75,000 we were expecting, it wasn't going to be great news anyway. clearly the market is looking to hold on to something. i want to address something you said. i don't know if you still got that chart. >> yeah. >> the previous one. carol was saying what is with the revisions? what we do is every time we get a new report, they usually revise at least a couple of months because we have better information, better data. sometimes it's revised down and sometimes it's revised up so sometimes you think things are better or worse. in this case, we're better off. >> a lot better off. you look in may instead of 27,000 jobs created we created 53,000. in june -- remember last month, a shocker. we created 46,000 and instead of 75,000 as we thought would
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happen, our economists on average forecast, you had 117,000. i don't mean to throw the cold water on the whole thing but we got to have like 130,000 to 150,000 jobs to created to absorb people into the economy. it's not good enough. it's just not good enough but better than the worst fears. >> work your way back over here and we will have a conversation with tad gilliam. he has been watching this closely. you're very connected to the job market because you have companies consulting companies to employers. you place people in temporary jobs. you really know this before the report comes out? >> we are the world's largest temporary employment and recruiting for permanent jobs country in the world. we do have a lot of interaction with clients and candidates that will taking place over the course of the changes in the marketplace. i think today's news is better than people expected. the strength here that is important i think is the private sector side because we know over time the government is going to. to have to shed jobs and, in fact, this was a significant
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improvement month over month and the number of jobs lost from a government perspective. it was 51,000 last month and now only 23,000 here. i think that is an improvement. as christine said, we are nowhere where we need to be. i think probably six months ago we were here talking about if you can get to 300,000 jobs a month we could get unemployment down to 8%. >> we would be doing a happy daens then. as far as the terrible drops in the stock market this will stem, stop that? >> i can't always make the prediction what is going on in the employment market and the stock market, that's for sure. the job market has been okay. it just hasn't been as robust. the first quarter was better. we saw a slow down in the job market overall in the second quarter as you saw in the bls data but also in client activity. but we still do see clients adding jobs. most of the time, they are going for temporary employees and they are going for contract workers because that gives them flexibility because they still don't have confidence in a real aggressive recovery. >> let me ask you how you become
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a contract worker. i hear overhiring contract workers. say i lost my job in x industry and i want to make myself a contract worker. how do i do that? >> lots of times if you have an opportunity for an interview and maybe the implemployer is not jumping on we will hire you right now. you say why don't i work for you six weeks or two months and i'll work as a contractor and you may not bet benefits for the six months. maybe you will. but it gives them a lower risk opportunity to engage. >> and a reason to jump. >> in some cases they are trying to do a project. they say i know i have a project for six months but i don't know about after that. you can say, i'm happy to work on that project the next six months for you. >> what do employers want to hear from the government to make them hire permanent workers? >> i think at the largest level, they are not confident in the pace of the economic of the economy to get back into hiring large numbers of people is the big issue. the discussion around the debt
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ceiling and budget and all of that, the recent revisions down in gdp is not giving them confidence. there are things that could be done into next year that will help. in 2010 we had a program called the hire act which allowed an employer, 2% benefit for hiring someone who had been out of work. if we would do that again in 2012 and say, look. for every new employee you bring on, mr. employer, mrs. employer, we will give you this 2% credit. for companies that need resources that encourages them to make the hires here in the united states instead of going to india or the philippines. >> so the president is coming out later today and he is going to pitch a plan to give some sort of incentive for companies to hire veterans. that's a good thing to do. >> that's a good thing. by the way, we have a lot of programs to help veterans coming back, specifically at addecco. that is great thing but we need something broader. not just focus on people
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unemployed but all new implies and extending the current tax break for individuals. 2% we're getting an extra 2% spending in the consumer side today because people who are employed aren't paying that tax. we need to extend that in 2012. otherwise, we are going to go into next year with 2% less available spending for most people who are employed. >> ig, great insight. thank you. >> thank you. >> let's get an inside of edgar hoover top secret fbi foils as we approach almost ten years since the september 11th attacks why hasn't there been another major attack on the united states? we are talking to "the new york times" best-selling author ronald kessler. he has the answers to those questions and he'll tell us about it next. the nascar nati,
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♪ it might be dysfunctional but it sure is beautiful. good morning, washington, d.c. partly cloudy now. 78 degrees. you're headed for a high of 90. from movie stars to the most wanted. a new look at the fbi's most
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closely guarded secrets. joining us is ronald kessler. author of the book "the secrets of the fbi." i cannot wait to read this whole book. fascinating things are included. oh, by the way, welcome to "american morning." >> thank you. >> it's been almost ten years since 9/11. we have had no major attacks since then. a lot of people are wondering why. in your book, you sort of detail some of the reasons why we haven't suffered through another major attack. why? tell us why. >> since 9/11, the fbi has become very prevention oriented. they uls wanted to stop plots but now the emphasis is on gathering new leads, new clues instead of just closing the case, putting the bad guys in jail. and so the emphasis instead of putting people in jail first is to develop those clues. that is part of the reason there has been this change. they also have this top secret set of teams called tactical
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operations and really the most astonishing material in the book is about this which is how they plan bugs in offices, mafia hangouts and even embassies. weeks before they do surveillance of the premises and decide who goes in and who goes out. on the night of the break-in, they will watch the people at their homes who go back. if they try to go gak they divert them and dress as a police officer, they will stop them and have a phony traffic accident, they may open a fire hydrant in the area so nobody can go back. beforehand they take a photo of any dog that might be on the premises and show that photo to a veterinarian who is on contract and he provides the right amount of tranquilizer that is shot into the dog. at the end of the break-in, they wake him up. they create phony friends to town houses and taking a photo
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and create ago big tarp and behind, that the agents pick the lock, defeat the alarms. >> geez! >> two agents will go behind this phony bush towards the front door, that will hide them in the middle of the night. >> wow. so there is sort of court-sanctions burglars. fascinating. you also uncovered fascinating things about old cases in the files of the fbi, specifically about marilyn monroe's death. it seems she had a visitor the night she died. who was it? >> this is a teletype that came into headquarters just after her death. it's disappeared. but i have on the record from someone who saw it that it came from bill simon who had the los angeles field office and he said that just before her death, he lent his personal call, a white lincoln continental to bobby kennedy, the attorney general, to secretly go see with marilyn.
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i can confirm on a regular basis he would lend his personal car to her. >> so is it a legitimate question to ask then? did marilyn monroe commit suicide because of bobby kennedy? >> i believe so. i think he broke up with her and that is what led to the suicide. another suicide vince foster, of course, he was already depressed but a week before his death, the fbi found that hillary clinton had a big meeting with him and white house aides. in front of all of these aides, she hue mill late him because he disagreed with one of her points about health care legislation. she ripped into him and said you're just a small town hick lawyer and never make it in in the big time in front of all of these aides. after that, his behavior went downhill and he became very withdrawn. he would break into tears. according to the fbi that is what pushed him over the edge. >> just to refresh people's
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memories, vince foster was a deputy white house counsel and he committed suicide in virginia near the white house. >> right. >> he left some notes beside his body. one of them said, i was not meant for this job. here, destroying people is sport. as you know, there are many conspiracy theorists back then thinking he may have been murdered but what you found in the files, does that clear up for you? >> no question he was depressed. everybody, friends, aides. there were other notes from him. there is no question he was depressed. in fact, he wanted to consult a psychiatrist but he was afraid his security clearance would be lifted. he did commit suicide despite ll all of the conspiracy theorys. >> you talked to hillary clinton about this. what was the response? >> it was kind of weird. her pr person said it's silly to bother her with this and we
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won't ask her. i'm sure she was told about it so in the end the answer was no comment. >> i can't wait to read this book. ronald kessler, thank you so much for joining us thorng. morning headlines next. today marks one year since the chilean miners were trapped underground. how are they doing? unfortunately, the answer is not so good. >> nasa may have found evidence of flowing water falls on mars. y in the u.s., real estate in hong kong, and the optics industry in germany? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. with investment information, risks, fees and expenses
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this is cnn breaking news. breaking news this hour refinery explosion in memphis. can you see the plumes of smoke billowing from that facility. there are a hundred firefighters on the scene we are told. no reports yet of injuries but, again, an explosion at this facility. clearly a fire engulfing at least part of it afterwards. there you're seeing the smoke billowing from the facility. memphis, tennessee, a hundred
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firefighters on the scene of a refinally explosion. as of now, no reports of injuries. we will continue to follow that. other breaking news. the july jobs reported report released 20 minutes ago. better than expected. there were 117,000 jobs added in the economy last month. the unemployment rate fell slightly to 9.1% and we now know that may and june, more jobs were crated than we initially thought. a few more but at least that is something. stock futures are sent up. down all morning after yesterday's big selling off wall street. power companies warning of rolling blackouts with highs in the hundreds again across the southern plains. many places in texas are closing in on records on the most consecutive days of triple digit heat. today marks one year since the miraculous rescue of 33 chilean miners who were trapped underground for 69 harrowing days. it was the largest ever mining
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rescue operation. one year later, most are still unemployed and some are suffering with psychological and physical trauma of that ordeal. life on mars might not be such a stretch. these new photos of the red plaent are creating a real buzz at nasa because the channels in those craters suggest the possibility that salt water is flowing on mars. nasa scientists say, hey, where there is water, there could be life. you're caught up on today's headlines. "american morning" will be back after the break.
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when i was diagnosed with breast cancer, my kids were
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really young and i was working full-time. we were struggling. when you add hospital bills and medication costs it throws your world ups down. my husband took care of me and the kids. my parents and everybody informed me through treatment, i was meeting that doesn't have it as easy as me. all of these women were there for me and i couldn't pay everybody back so i decided i was going to pay it back. my name is debbie cantwell. we send out gift cards and housecleaning services. >> i was really bottoming out emotionally and then, all of a sudden, i can buy diapers and i can get food! a card! look at that! it's so much more than just tangible things. it's hope. >> i help young women that can't
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wait for a cure. these women are sick right now and they need help today. hi, rachel, how are you? did your groceries come? >> they did. i just got them. i appreciate it. it's such a huge help. >> they are my sisters and i honestly would do anything to help them out. i take it really personally. it's hard when i lose somebody, but it's just part of the job. i will probably die of breast cancer someday, but i want to really make the most of the time i have by doing some good in the world and being the best i can for whatever time i have left. -having her is amazing. -we made a miracle. and we got onesies! sometimes miracles get messy. so we use tide free. no perfumes or dyes for her delicate skin. brad. not it. not it.
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just kidding. that's our tide. what's yours? i grew up wearing lots of hand-me-downs. bell bottoms in the '80s? not pretty. then she found them. she loved them, so i washed them in tide with downy and they're still soft and fresh. right? i'm blogging. really. i'm talking. that's my tide. what's yours? i'm talking. ♪ ♪ when you're resonsible for this much of the team, you need a car you can count on. ♪ but i did. they said i couldn't fight above my weight class. but i did. they said i couldn't get elected to congress.
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but i did. now i'm trying to make it in music. ♪ sometimes when we touch ha ha! millions of hits! [ male announcer ] the new hp touchpad. get it now for $100 off, starting at $399.99. ♪ get it now for $100 off, starting at $399.99. any questions? no. you know... ♪ we're not magicians ♪ we can't read your mind ♪ ♪ read your mind ♪ we need your questions ♪ each and every kind ♪ every kind
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♪ will this react with my other medicine? ♪ ♪ hey, what are all these tests even for? ♪ ♪ questions are the answer ♪ yeah ♪ oh
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time for our talk back comments. we asked the question when will our fears about muslim americans fade and you answered in droves. farzanna says the following. this from michelle. as long as human beings are alive our fears about any one people will never go away. this from aurie. people stop being close-minded and open their minds and hearts people don't realize how much this nlife they miss out. chris christie was right. it's crazy! thank you for your responses this morning. please continue the conversation. >> i think chris christie might have won some new fans actually. he was pretty straight talking about that in a way that ua